Ajay Piramal, chairman, Piramal Group and Shriram Group, on Wednesday subtly indicated that the proposed merger between the Shriram Group and IDFC is being reworked since a section of shareholders were not happy with the structure. The contours of the proposed merger are still being worked upon and have not yet been finalised, Piramal said on Wednesday.
“The status of the deal is in works, as we had announced even in August, we are going to explore ways to see if a merger works out on the basis of what the RBI (Reserve Bank of India) approves and on the basis of what the valuations are. So we are still looking at it,” Piramal told reporters on the sidelines of the launch of Piramal Finance’s foray into retail housing finance business through its wholly owned subsidiary Piramal Housing Finance.
On being asked if the structure of the proposed merger would be changed due to opposition from a section of shareholders, Piramal said, “We will see. It is all about opposition of shareholders. We are the largest shareholder. We will never do anything which is not in the interest of shareholders. We have a vested interest to see that. But even otherwise, as a group, Piramal has always seen to it that all shareholders get the most appropriate deals. So that’s what we will see.”
Piramal Enterprises, the flagship company of the Piramal Group, owns a 20 per cent stake in Shriram Capital and 10 per cent stake each in Shriram Transport and Shriram City Union. Ajay Piramal became the chairman of Shriram Capital in 2015. FE